Calculating VAT Using absolute cell referencing

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Calculating VATUsing absolute cell referencing
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What exactly is VAT?

• VAT is value added tax
• Most products we buy have VAT added to them
• VAT is calculated as a percentage of the product
  price usually 17.5
• Some products have a lower rate of VAT
• Some products, like food and books, do not have
  VAT added
• Businesses have to pay VAT to the Inland Revenue
  on all the products they sell

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Step 1 Add VAT percentage to a spreadsheet
The first step is to enter the VAT percentage
rate into your spreadsheet. This is usually
17.5. On the table shown, it is in cell C17.
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Step 2 Calculate VAT on ticket price
Now you need to type a formula into cell D4 to
calculate the VAT on ticket price.
The formula needs to always refer to cell C17.
What type of cell reference would you use?
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Step 3 Enter your formula
Now enter the formula in D4. Remember, you can
click in the cells instead of typing the cell
references. In the example opposite, what still
needs to be added to the formula?
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Step 4 Make a cell reference absolute
We need to add dollar signs to C17 to make it an
absolute cell reference.
C4 should stay as a relative cell reference. Can
you see why?
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Step 5 Press Enter!
Press Enter on your keyboard. The value for VAT
on the price of a ticket will now show in cell
D4.
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Step 6 Copy the formula to other cells in a
series
Using the Fill Handle, copy the formula to cells
D5 and D6.
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Step 6 Copy the formula to other cells in a
series
Using the Fill Handle, copy the formula to cells
D5 and D6.
The new formulae should still refer to cell C17.
C4 should have changed to C5 and C6.